US troops landed in south-east Poland near the border with Ukraine on Sunday, after President Joe Biden ordered the stationing of 1,700 soldiers there. The move is widely seen as being aimed at deterring a possible Russian invasion of Ukraine.
Hundreds more are still expected to arrive about 90 kilometres from Poland’s border with Ukraine.
Their commander is Maj Gen Christopher Donahue, who on August 30 was the last American soldier to leave Afghanistan.
“Our national contribution here in Poland shows our solidarity with all of our allies here in Europe and, obviously, during this period of uncertainty, we know that we are stronger together,” Maj Gen Donahue said at the airport.
In Warsaw, Polish Defence Minister Mariusz Blaszczak hailed the arrival of the troops, saying that “deterrence and solidarity are the best response to Moscow’s aggressive policy, to the aggressive attempt at reconstructing the Russian empire”.
Russia has amassed about 100,000 troops on the borders of Ukraine, some for joint military exercises in Belarus, but insists it has no intention of invading Ukraine.
A collective response by Nato members is “the best response to a threat, the only method of assuring security to Poland and to other Nato countries on the alliance’s eastern flank,” Mr Blaszczak said.
He emphasised that he held a number of talks on the subject with US Secretary of Defence Lloyd Austin.
Mr Biden ordered additional US troops to Poland, Romania and Germany to demonstrate to both allies and foes America’s commitment to Nato’s eastern flank amid rising tensions between Russia and Ukraine, his office said.
Nato’s eastern member Poland and Romania both border Ukraine.
The US division can be rapidly deployed within 18 hours and carry out parachute assaults to secure key objectives. Based in Fort Bragg, North Carolina, the division’s history goes back to 1917.
Earlier in the week, US planes brought equipment and logistics troops in preparation for the arrival of part of the division at the airport.
Polish soldiers have previously worked with the US division on missions in Iraq and Afghanistan and they have trained together, said Maj Przemyslaw Lipczynski, a spokesman for the Polish Army’s 18th Mechanised Division.
About 4,000 US troops have been stationed in Poland since 2017 on a rotating basis, to boost security in the face of Russia’s increased military activity.
European officials fear that the continent’s energy supplies are vulnerable in the case of hostilities over Ukraine.
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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